HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Wednesday, 13 October 2021

HMRC Has Ground To a Halt


 

HMRC is doing its best to destroy small businesses because of crippling delays, which have resulted in rebates going unpaid for months on end. 

HMRC is taking several months to process post and deal with issues that should take weeks under normal circumstances.

Taxpayers are missing out on large refunds, which has severely impacted businesses’ cash flows. Accountants said the tax authority had “ground to a halt”. 

Experts said the large numbers of HMRC staff working from home was likely to blame, as well as the clampdown on furlough fraud which they said had resulted in more taxpayer requests requiring additional verification.

Myelin Verboom of tax firm Mcas said one of her clients was still waiting on a six-figure payment. Her business could go bust if it did not receive the money soon, she warned.

“We have a property developer who bought a block of buildings, incurring a £250,000 VAT bill which was deductible. They have been trying to claim it back but the delays are so bad they have not even been able to register their business to pay the levy. 

There is a real risk these delays will end up pushing firms out of business because of the cash flow problems they are causing.”

Stuart Crofton of accountancy firm Stuart Crofton Tax said anything that required human intervention was taking longer than normal.

“I have one rebate of £50,000 still outstanding which we applied for in April. It is a massive loss for our clients. While HMRC will handover the paltry 0.5pc or so in interest the refund has accrued whilst it has sat in the tax office’s accounts, it pales when compared to the returns they could have enjoyed investing that money in the FTSE” .

HMRC aims to refund overpaid VAT within 30 days. However, its turnaround times have lengthened significantly since the start of the pandemic. 

Two thirds of letters addressed to HMRC went unanswered for more than two weeks in April and performance levels are still low, as the above chart shows. 

Lisa Styles of Hespera, another tax firm, said even simple tasks such as registering for self assessment were taking far longer than normal, meaning newly self-employed people faced being fined for late filing or tax payments next year.

If someone became self-employed last year and needed to register as self-employed to file their return and pay tax by January 31, the deadline to do this was October 5. But delays mean some are being told they will not be added to the system until March 2022, accountants said. 

Ms Styles said part of the backlog was down to a higher number of fraud checks than normal. HMRC has been tasked with recovering billions lost to fraudulent furlough claims. Higher numbers of staff are now working away from the office, after new rules allowing staff to work from home two days a week were introduced.

Self assessment services were also impacted after 5,000 staff were seconded to provide Covid-19 support during the crisis, although service levels in that department have since recovered to more normal levels, according to tax office sources. 

A spokesman for HMRC said: 

“We know there is more to do to improve turnaround on customer correspondence, and we expect to see further improvements as we emerge from the pandemic and continue to rebalance how we prioritise our resources.”

Tell that to the people whose livelihoods you have destroyed because of your delays!

Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday, 11 October 2021

HMRC Staff Return To The Office for One Day a Week


 

Public Technology reports that HMRC has begun its return to the office, although staff across the department will continue to work remotely for four days a week, on average.

In an all-staff memo sent last week, permanent secretary Jim Harra said more than 16,000 staff who had been working from home during the coronavirus pandemic had returned to offices by the end of September. They included 4,300 staff who had come into the office for the first time in the week leading up to the memo.

He said that by the end of last week, he expected “all colleagues in England and Scotland who have been temporarily working from home during the pandemic, will have agreed a plan with their line manager to return to the workplace for an average of one day a week, using the discussion toolkit”.

Those returning join around 4,000 HMRC staff who have been working from offices during the pandemic. Those civil servants are considered key workers and could not do their jobs remotely.

Staff in Wales and Northern Ireland should continue to work from home, he said.

I trust that in the coming weeks many of you will have the chance to re-connect face to face with your colleagues and enjoy a taste of office life again,” he said.

Harra said the expected one-day-a-week return “won’t be the same for everyone”.

Depending on your personal circumstances, you may need more support in making arrangements, so it’s really important that you talk to your manager about what is right for you,” he said. He said National Inclusion Week, which fell on the same week as his message, was a “real reminder to us all to continue to be respectful, kind and inclusive towards each other as more of us return to our offices”.  

The perm sec said he expected there will be “teething problems” as the number of staff working from HMRC’s buildings increases.

Please help your estates colleagues and location leads, who are doing an excellent job of coordinating all this for us, by reporting any issues that you see, and being patient as we move to our new arrangements,” he said.

The returns process and the toolkit Harra mentioned has been agreed with unions.

The PCS union has told its members they should only return if HMRC meets its agreed criteria to have a plan in place with their line manager, and if it is suitable for their individual circumstances.

PCS's advice is clear: the discussions between jobholders and managers must happen, so that any concerns about returning can be identified. Where it is not yet possible to establish a set date when you will start working in the office, you can continue to work from home; and you should agree with your manager when during the coming weeks, the situation will be reviewed,” the union said.

It added that union reps have “reiterated to the department that any attempt to force members back to the office would be unacceptable”.

For its part, HMRC has given a commitment to working with staff, to take reasonable steps to address their concerns and to support them to return. We’ve agreed with HMRC that any concerns arising from the agreed process and procedures will be escalated and resolved,” it added.

Harra’s email came the same week the coronavirus furlough, self-employment support scheme and sick pay rebate schemes came to an end.

I wanted to take a moment to say thank you to everyone for enabling the department to deliver these schemes so brilliantly, whether you have worked directly on the schemes or held the fort on our usual work,” Harra said.

He said civil servants’ “hard work and commitment” had helped to protect 11.6 million jobs and directly supported 2.9 million self-employed people across the UK.

I am deeply proud of your dedication and the huge scale of what we have been able to deliver together for individuals and businesses – so, thank you,” he added.


Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday, 4 October 2021

HMRC To Review The Pandora Papers



Tax does have to be taxing.

Tax Investigation Insurance

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"